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Offshore Company Setup

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Offshore Company Formation in UAE

Offshore company formation in the UAE is based on the concept of the term offshore which refers to a location outside of one’s home country. An Offshore Company is a legal entity that is set up with the intention of operating outside its registered jurisdiction or the location of its ultimate ownership. Companies and individuals (typically those with a high net worth) may move offshore for more favorable conditions, including tax exemption, relaxed regulations, or asset protection. Although offshore institutions can also be used for illicit purposes, they aren’t considered illegal.

Offshore company formation in the UAE – Jurisdictions

The concept of free zone company setup and offshore company formation in Dubai should not be confused. Free Zone companies in the UAE are used for operating business in the UAE while having a physical presence, while offshore company formation in the UAE provides only office address and registration in the UAE without being entitled to operate business activities directly in the UAE.
In 2003, the Jebel Ali Free Zone Authority was authorized to perform offshore companies in Dubai. Later, in 2007 two other Free Zones in Ras Al Khaimah such as Ras Al Khaimah Free Trade Zone (RAKFTZ) and Ras Al Khaimah Investment Authority (RAKIA) also started offshore company formation in Dubai. Both of these later on came under Rak International Corporate Centre (RAKICC).
The latest one in the list is Ajman Offshore jurisdiction formed in 2014 which is administered by Ajman Free Zone Authority.
An offshore company can be set up with an individual shareholder or corporate shareholder. Although these companies are registered, they do not have a physical presence in the UAE. Therefore shareholders will not be able to obtain a resident visa. They can hold bank accounts, including multi-currency, to carry out their routine local and international transactions. The company formation can be done only through registered agents who will provide the registered office address. Offshore companies are also allowed to hold real estate properties approved by the relevant free zone authority in the permitted jurisdictions. Details of the shareholders will not available in the public record. This makes offshore company formation in Dubai ideal for foreign investors who wish to retain anonymity of their business dealings within the UAE and beyond.
An offshore companies in UAE is not issued with a business license, but only a certificate of incorporation. This means the offshore company cannot conduct any commercial activity with persons within the United Arab Emirates. It can only undertake international business transactions and deals.

Features of various offshore jurisdictions in UAE

JAFZA Offshore

RAK ICC Offshore

AJMAN Offshore

Procedures for Offshore Company Formation in the UAE

1. Select a company name:
Offshore company set up in Dubai required selecting a name for your which should be initially verified with the registrar. The name of the company shall end with Limited (Ltd.) Or Incorporated (Inc.).
The application form should be filled out and submitted with the relevant documents which generally include the following:
  • Identity proof of the shareholders and directors.
  • Address proof of the shareholders and directors.
  • CV of the shareholders and directors.
  • Well drafted business plan.
  • Photocopies of the shareholders and directors.

These documents will be submitted to the concerned authorities for their review and approvals.

Once the approval is obtained for the offshore company registration, the Memorandum of Association and Articles of Association needs to be drafted in English language. Once these are also approved by the authority, the company can be officially started.
The final step is to open an offshore bank account for carrying out the regular business transactions.

General Documents List for Offshore Company Formation In Dubai:

For Individual Shareholder :
  • Attested passport copy of the owner/shareholder.
  • Residential proof.
  • Original bank reference document.
  • Details of the owner/shareholder/UBOs.
  • Preferred name of the company to be formed.
  • Suggested name and activities of the newly formed offshore company.
  • The hierarchy of beneficiaries.
  • CV of the shareholders.
  • Attested copy of trade license or incorporation certificate copy.
  • Board resolution.
  • Memorandum of Association.
  • Incumbency certificate of the parent company mentioning the name of shareholders/directors, and duly attested.
  • Passport copies of the shareholders, directors and secretaries of the proposed offshore company.
  • Parent company’s certificate of good standing –Attested.
  • Hierarchy of beneficiaries.

Benefits of Offshore Company Setup

  • The flexibility with regards the residential status of the directors and shareholders. Even non-residents can become the shareholder/director.
  • No Minimum share capital requirement.
  • Lower levels of monitoring with regards books of accounts and accounts filing & auditing.
  • Lower cost of incorporation & registration.
  • 100% foreign ownership.
  • No requirement of physical office in UAE.
  • Allows 100% repatriation of profits.
  • Not regulated by the state laws.

Working with a registered agent and company formation specialist

When it comes to company formation in Dubai including UAE offshore company formation, it is always a better idea to work with a professional agent such as Elevate Business Solutions who can take you through the whole process hassle free with their expert team. Along with handling your company formation application, we can also assist you with opening a corporate bank account advising the most appropriate financial institution. Going an extra mile for our clients is our habit so that our clients can have the peace of mind to focus on their business.

Frequently Asked Questions (FAQs) -

It’s a business entity registered in the UAE but not allowed to carry out any commercial activity within the country. It’s designed for international operations and is often used for holding assets, managing wealth, or streamlining cross-border transactions.
No. Offshore companies can’t trade within the UAE. They’re not issued a business license — only a certificate of incorporation. So they can’t offer services or sell products to UAE-based individuals or businesses.
  • 100% foreign ownership
  • No requirement for a physical office
  • No minimum capital requirement
  • No audit or tax filing obligations
  • Asset protection and confidentiality
  • Full repatriation of profits
Yes, but only in approved jurisdictions and specific areas. For example, JAFZA offshore companies can hold real estate in Dubai — but only after clearance from the relevant authority.
  • JAFZA Offshore (Dubai) – Known for property holding eligibility and strong governance.
  • RAK ICC (Ras Al Khaimah) – Offers cost-effective setup and easy documentation.
  • Ajman Offshore – A newer option with fast incorporation and simple processes.
RAK ICC (Ras Al Khaimah International Corporate Centre) is a key offshore jurisdiction offering simplified compliance, flexible ownership structures, and low setup costs. It’s often preferred for holding international investments and assets.
RAK ICC is strictly for offshore purposes — it doesn’t allow physical offices or local trade. Free zones, on the other hand, are meant for onshore operations within the UAE.
No. DWTC (Dubai World Trade Centre) is an onshore jurisdiction that offers benefits like dual licensing and access to local UAE markets. It’s more suited for companies looking to have a UAE presence with real operations and staff.
Yes, they can open multi-currency corporate bank accounts — but only through a registered agent. The process involves due diligence, and requirements may vary depending on the bank.
Yes. Offshore companies in the UAE must be set up through licensed agents. Elevate Accounting & Auditing offers complete offshore setup services — from company registration to banking support.

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